China Pharma Posts Narrower Loss In FY18; Revenue Down 6.7% - Quick Facts

(RTTNews) - China Pharma Holdings, Inc. (CPHI) reported a net loss of $10.8 million in fiscal year 2018 compared to a loss of $19.3 million in fiscal year 2017. Loss per common share was $0.25 compared to a loss of $0.44.

Full year 2018 revenue decreased 6.7% to $12.3 million from $13.2 million, previous year. The company said the decrease was mainly due to the negative impact associated with health insurance cost controls as well as government policies targeted at reducing drug costs as a proportion of total health-care spending, in conjunction with the company's efforts in controlling bad debts by more rigorous screening customers and more stringent policies on payment terms.

Ms. Zhilin Li, China Pharma's CEO, said: "We experienced certain market fluctuations in 2018, but through the continued implementation of sales promotions, our sales revenue of 2018 was comparable to the same period a year ago. Management will continue to vigorously promote sales through active participation in recent provincial market openings to solicit new drug tender offers and allow China Pharma to expand its presence in these markets. In addition, we continued experiencing sustained pressure from the more stringent requirements of drug registration standards, consistency evaluations, and the rising costs of clinical trials in 2018. In this challenging environment, the company actively evaluated the technical difficulty, investment demand, time requirements, and investment return rate of all applicable marketed and pipeline products, and actively advanced the compliance process for several key products in 2018."